The True Value of Retention
How to Engage and Retain Your Employees
How to Retain Your Employees and Reduce the Costs of Losses
The past year and a half has been tough on all businesses, including both the employers and employees. Notably, the pandemic has brought into focus how individuals view work, resulting in a shift in what the role of organisations actually is, as well as a renewed interest in employee benefits and staff wellbeing.
The reality is that employees have new expectations from their employers, ones that were not prevalent pre-pandemic, such as the need for flexible working arrangements that result in more work-from-home opportunities to achieve a better work life balance.
This now seems to be the norm within the modern workplace and employers need to go the extra mileto demonstrate their value proposition to employees and reduce employee losses.
The True Costs of Losing Staff
At Success CXP, one of our key objectives is to help companies engage and retain their employees through our Team Engagement & Retention Services. Not just to retain your best and brightest, but to also avoid the incredibly high costs of staff losses.
To put it more plainly, let’s look at the costs of losing staff:
- £5,344 – The average recruitment cost to replace a team member who has left.
- £25,182 – The average cost of lost productivity while training a new team member.
- £30,614 – The average cost in turnover per employee that resigns.
What Employees Want From Their Employers
Employees are now more stringently vetting their current packages, as well as any new job opportunities, reviewing the benefits with a closer eye before making their decisions. Rising to the top of their priorities are employee benefits packages and finding a workplace that genuinely cares about their staff.
In particular, during their research and interviews, employees will be looking for proof that a duty of care exists, with an emphasis on the opportunity to develop the psychological contract between themselves and their employers.
The result of this shift in expectations is that employers now need to demonstrate why they should be considered as the employer of choice in an increasingly competitive marketplace. One way is for employers to invest in technology to deliver benefits packages that attract and retain the best pool of workers available.
The Role of Employee Benefits
Employee benefits are used to provide incentives and rewards to all employees, enabling employers to boost their staff morale and staff retention. Staff retention is vital for the day-to-day running of any business and proven to be an effective strategy in order to retain your most valued team members – the ones contributing to putting your business a cut above the rest.
Staff retention has traditionally limited employee benefits to financial rewards. However, now businesses are seeing that it’s vitally important to add to these benefits with rewards that improve the psychological contract between employers and employees and positively impacts employee engagement in the workplace.
This requires demonstrating just how important your staff are to you and your business in a bid to help retain your staff. To that end, employee benefits should also focus on staff appreciation by acknowledging hard work and rewarding appropriately. Actions of this sort are needed in order to transmit the message to your employees about just how important they are to you and your business and display a genuine duty of care to help to promote their wellness needs.
The Building Blocks of Loyalty
Essentially, showing appreciation and a nurturing environment builds the foundations of a happy and engaged team and helps employees feel connected.
By providing your employees with rewards, you can help ensure a happy working environment and more engaged employees, which is shown in a study carried out by authors, Bolman & Deal (2014), to deliver more benefits to the business through this subsequent positive effect on employee engagement.
For more information on our Team Engagement & Retention Services, please contact us on 01246 293013 and we would be happy to discuss our tailor made packages to help improve your employees’ wellbeing